I am experiencing what appears to be the same problem.

The network-admin has an unnamed default location. I have a saved location that 
has my correct DNS settings. However every time that I restart my computer the 
settings revert to the unmaned location.  That means I need to do a manual 
configuration every time I restart.
I am using Ubuntu 7.10 Gutsy Gibbon

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[network-admin] net-mgr doesn't remember location
https://bugs.launchpad.net/bugs/74454
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